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California’s “Clean” Initiatives Cause Ruckus Among States and Transportation Logistics – Mainly the Trucking Industry – And Florida is Keeping a Close Eye

May 21, 2024 by AVI_Admin 0 Comments

Before we dive into the details of which proposals would impact whom the most, let’s sum up what’s going on with a good, old-fashioned abstract introduction. California wants to go green – which many of us can appreciate – but its most-recent attempt to do so could impose regulations that would ultimately impact every state’s trucking industries, as well as the manufacturing of trucks as a whole. The Sunshine State transports around 75% of its commercial goods via trucks despite having various transportation options including rail, water, and air. As we follow California’s proposals, it’s clear that they have the potential to influence national regulations on transport and truck manufacturing. This makes it essential for us to monitor these developments closely.

How can one state propose changes that extend so far beyond its borders if these “rules” become laws? The proposed regulations would require all trucks entering California to meet new standards or face fines. This means trucks from other states, even those compliant with their own state and national regulations on weight, emissions, and more, would be penalized when delivering goods to California. These regulations, detailed below, aim to work together to achieve a fully zero-emission vehicle (ZEV) fleet in California by 2050. While California is striving for a greener future, the plan overlooks the complexities and challenges of maintaining and equalizing standards in a way that fairly represents every state. In a statement from John Kingston’s article, “17 states sue to block California’s Advanced Clean Fleets rule,” published on Freight Waves, “The fear among other states… has been that a regulation in the Golden State effectively becomes a national regulation as OEMs resist building products that don’t meet California’s rules and companies seeking access to the California market change their operations to meet those rules.” Let’s look closer.

California’s Proposed Rules

California adopted the Advanced Clean Truck (ACT) rule in 2020 in an effort to address its state-wide problem with air quality, as vehicles (whether personal or commercial), “are responsible for approximately 80% of smog-forming nitrogen oxide (NOx) emissions. They also represent about 50% of greenhouse gas emissions when including emissions from fuel production, and more than 95% of toxic diesel particulate matter emissions” in the state, according to the Advanced Clean Trucks Fact Sheet. The ACT targets truck manufacturers, sometimes referred to as original equipment manufacturers (OEMs), forcing them to transition production from combustion engines to Electric Vehicles (EVs) over a period of time. According to the article, “Understanding California’s Advanced Clean Truck Regulation,” ACT, “requires (OEMs) of medium- and heavy-duty vehicles to sell zero-emissions vehicles (ZEVs) or near-zero-emissions vehicles (NZEVs) such as plug-in electric hybrids as an increasing percentage of their annual sales from 2024 to 2035. The regulation uses a cap-and-trade system, capping the number of fossil fuel vehicles sold by stipulating annual sales percentage requirements.”

Now that we know a little more about ACT, let’s look into the most-recent rule proposal, which was designed to complement ACT, the Advanced Clean Fleets (ACF) rule. While ACT focuses on truck manufacturing, specifically those companies that produce more than 500 vehicles per year, ACF targets businesses that purchase and drive trucks. This newest phase of California’s clean initiatives is perhaps even more impactful, as far as its potential to affect other states, as it lays out rules that could potentially penalize drivers/businesses that travel to California. States’ main concerns are that fleets will need to adapt to the larger state’s rules – including those which could dictate a timetable for a vehicle’s “useful life.” Many feel this is unconstitutional – with fair reasoning. The summary of ACF can be found in this article, “Advanced Clean Fleets Regulation Summary,” but there is much concern and opposition surrounding the proposal.

Concerns & Opposition

Many of the items listed here come from a variety of sources and are hot topics among larger company fleets as well as individual drivers who own and operate their own rigs/businesses. It’s important to note that several states have filed suit against both the ACT and ACF, with a multitude of complaints. Though previously referenced, this article provides great detail into the “who and why” when it comes to states currently in opposition to ACF. Secondarily, “19 states target EPA waiver for California’s Advanced Clean Trucks rule,” lays a strong foundation as to why states became concerned and continue to worry that the new initiatives, if made into law, will reach far beyond California’s borders.

These are some of the key factors that worry states and businesses alike:

EV trucks cost more, though this article on Forbes, “Electric Trucks Will Be Cheaper Than Diesel – Years Fast Than Expected” does show some promising decline, upfront costs remain higher, and any reduction in expense is very much reliant upon government incentives and programs
The cost of implementing charging stations along highly-traveled routes, specifically around states that have Adopted California’s Vehicle Regulations, would be significant expenditures for individual states
Power grids – including in California – are not currently equipped to handle the energy load required to charge EV trucks and would require massive infrastructure updates
EV trucks weigh more, due to the weight of the batteries, than current diesel models
- Adding weight to the carrier itself means reduced load capacity and potentially more damage to roadways
- Heavier vehicles may also contribute to more deadly collisions. This article on com provides insight on both commercial and personal-use EVs based on weight, “Drivers beware: Some electric cars are so heavy they risk crushing smaller vehicles in collisions.”
- More weigh stations and staffing will be needed nation-wide to maintain regulations
Even with technological advances, EV batteries cannot provide the same duration of travel allowed by gas, which would mean stops for charging and possible delays in transport times
The cost and environmental impact of producing EV batteries exceeds the cost and impact of the manufacture of combustion engines, and we have only predictions thus far as to whether or not the upfront environmental cost will offset the long-term impact. It appears as though the payoff will be worth it, but here’s an article published on NPR.org that can help answer questions regarding this concern

Rounding Things Out

Rounding Things Out

Though it may seem there are a lot of cons, there is good intention behind initiatives to move transportation industries in a greener direction. No doubt, reducing emissions, fuel dependency and cost, and creating a more sustainable system would be amazing in a perfect world. But are we there yet? In an attempt to remain unbiased, this article does an excellent job of outlining both benefits and hazards regarding a transition to EVs for the trucking industry, “Electric trucks vs. gas: Which is best for your fleet?”

Though Florida is not currently among the states involved in any of the suits, perhaps due to the less-frequent need for goods to be transported all the way from FL to CA via interstate trucking, regulations that can potentially affect national change are on our radar – especially since the majority of commercial transport is performed over the road.

Florida’s geographic shape and location allow access from sea to ground better than most. Our extensive highway system plays a vital role in the movement of goods throughout the state and beyond. “Highways like Interstate 95 and Interstate 75 serve as crucial arteries for the transportation of goods, connecting major cities and facilitating trade flows,” as a part of supply chain performance, according to this article detailing Florida’s unique placement in transportation logistics industries.

To sum things up, many states are understandably concerned with the potential impacts of California’s clean initiatives – while good in theory – as they have the ability to affect the entire trucking industry.

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Air Van Wins TQL Elite Carrier Award

May 9, 2024 by AVI_Admin 0 Comments

[Jacksonville, Fla.] – Air Van, Inc., a Jacksonville-based third-party logistics company (3PL) has been named an Elite Carrier by Total Quality Logistics (TQL) in the Full Truck Load category of their annual recognition of excellence awards. TQL is the second-largest freight brokerage in North America with a pool of over 65,000 carrier partners. Just partnering with the firm proves a reputation of business integrity, but the honor of Elite Carrier for Full Truck Load services is quite the accolade.

In expression of gratitude, President and CEO of Air Van, Inc., Ike Sherlock, stated, “We are incredibly proud of our Air Van truckers. Our client has recognized these professionals’ dedication to safety and service and we are very grateful to TQL and our entire team for this much-deserved award.”

The TQL Awards for Elite Carrier are determined by category and include both Full and Less-Than-Load (LTL) capacities. Such awards recognize carrier partners for their commitment to quality of service, volume growth, responsiveness and communication, as well as consistency. The prestigious titles place carrier partners at the forefront of service via the preferred status among TQL customers.

In a market that has experienced drastic changes and uncertainty, Air Van, Inc. is dedicated to evolving and adapting to the Jacksonville market. Through recent acquisitions and team growth, AVI continues to expand upon its offerings in order to become the most efficient and reliable resource for customers. Cultivating a lineup of talented employees ensures the company doesn’t miss a beat. It’s these qualifications that align AVI with TQL’s four winning principles: Pledging Integrity, Exceeding Expectations, Recognizing the Value of Teamwork and Being Forthright about Conflict.

Air Van, Inc. is committed to enhancing market dynamics and optimizing “Final Mile Delivery,” a pivotal step in moving goods from warehouses to their final destinations. This process not only reduces expenses but also enhances efficiency and simplifies supply chain operations for businesses. Maintaining their valued partnership with JAXPORT, Air Van, Inc. is dedicated to surpassing the expectations of local warehouse clients. Honored to be recognized as the 2024 Full Truck Load Elite Carrier, they eagerly anticipate expanding their loyal customer network.

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Jacksonville Named Country’s 2nd Hottest Job Market, Growing Area Logistics Industry

Apr 30, 2024 by AVI_Admin 0 Comments

A recent analysis from the Wall Street Journal and Moody Analytics placed Jacksonville, FL in second place for hottest job market in the nation. Due to an influx of corporations relocating to the River City, bringing new jobs with competitive wages, the city’s growing in popularity. Our geographic location as well as the port play key roles in these moves, which is adding opportunities specifically within the logistics and transportation industry. According to Kyle Baltuch of the Florida Chamber Foundation, a facet of the Florida Chamber of Commerce, as cited in a recent article posted by Action News Jax, “When you look at some of [the] comparative advantages like transportation, you look at some of those comparative advantages like being able to get a shipping container straight onto the Atlantic immediately, that’s a value and that’s something that businesses are talking about.” That being said, let’s dive into some of the specifics regarding industry growth and why we can expect it to continue.

The First Coast provides a multitude of communities within itself, spanning several counties, all with marked educational benefits. While each county has its own ranking, our overall school system remains strong, inviting families and laying an excellent foundation for college success. In addition to primary education, Jacksonville is home to several accredited state and private colleges that provide a multitude of degrees for transportation and logistics, supply chain management, etc. Florida State College at Jacksonville and the University of North Florida are just two of the major institutions offering such programs (see the links for specific degree information). Though educational fortitude is not a new indicator on its own, the increase in industry-specific programs of study in recent years, based on the growing area demand, should be noted as a reason for the uptick in the city’s job market. The more corporations transition to Jacksonville, the greater the need for educated, talented employer/employee prospects with applicable skills and qualifications.

Shifts in global supply chain and trade flows continue to reshape the transportation and logistics industry, post pandemic. That massive interruption, as well as weather events and geopolitical disturbances, highlight the need for diversification and the importance of maintaining and growing Florida’s manufacturing and logistics sectors. Indirectly, placing a heavier demand for services based around Jacksonville’s port and geographic location. According to the article, “Florida Trade & Logistics 2030 Study Sets the Course for Florida’s Continued Leadership in Trade, Logistics, Exported-Oriented Manufacturing Activities, and Rural Economic Growth,” Florida Chamber of Commerce President & CEO Mark Wison states, “Purposely expanding manufacturing, logistics, trade, and rural economic growth aligns with Governor DeSantis’ continued leadership in this space and will help grow Florida to the 10th largest global economy by 2030. We have a generational opportunity to get this right.”

All this in tow, opportunities – including logistics-focused positions – within Jacksonville’s hot job market are noteworthy. According to Aundra Wallace, President of the JAXUSA Partnership division of the JAX Chamber (as cited in the referenced Action News Jax article above), commented, “the job market in Jacksonville isn’t only booming at the top. Look[ing] back to 2023, we brought in directly 2,500 new jobs. It also had the spin-off of 2,600 additional jobs. So, for every direct job there’s also indirect jobs coming in.” As Jacksovnille’s hot job market continues to bolster, so too does its need for housing. The article, “Industrial Growth Leads to Residential Boom in North Jacksonville” does an excellent job in displaying how industry jobs trigger “indirect” jobs and area economic dilation.

While not all of those jobs referenced above were specific to logistics, some of the areas we can expect to see mentionable growth are in warehousing, exports, and overland transport. Recent announcements that will bring hundreds of logistics-focused jobs to the area include, as found in the Jacksonville Business Journal, The Anderson-DuBose Company, Inc. expansion, which will invest $60 million into building a new Jacksonville facility to service more than 300 McDonald’s and Chipotle locations via “developing a 160,000-square-foot, rail-served ambient and cold-storage distribution facility.” Also, Publix Supermarkets, Inc. just announced, as published in this April 3rd article by the Jacksonville Daily Record, the addition of a 300,000-square-foot frozen foods warehouse to it’s westside property, slated to open in 2027, that will provide 150 new jobs at approximately $7.5 million in payroll by 2026 year end. The Tom Bush Family of Dealerships has also announced this month that it plans to open a 15,000+-square-foot parts warehouse near the Regency Square Mall.

Though we didn’t need a study to illuminate the influx of corporate relocations and its accompanying job-market upsurge, highlighting the area’s hottest opportunities – especially those in logistics and transportation – precipitates prosperity. The benefits of a bolstered economy are ever expanding and further strengthen solid placement for Jacksonville as a leader in logistics and hub for global trade. And progress is good.

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https://www.flchamber.com/fltl2030

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Francis Scott Key Bridge Collapse: What Are the Impacts on Trade Shipping and Will They Affect Jacksonville?

Apr 22, 2024 by AVI_Admin 0 Comments

The collapse of Baltimore, Maryland’s Francis Scott Key Bridge this past March 26, 2024, was an unanticipated, deadly tragedy. While we mourn the lives lost, we are forced to ponder the impacts of the event, how such an accident could occur in this era, and ultimately how the collapse is impacting the shipping market, including Jacksonville’s JAXPORT.

How It Happened:

First, we need to understand how the accident happened. While the investigation into the exact mechanism failures and liabilities remains ongoing, we do know that the collapse can be attributed directly to the collision impact of the cargo ship Dali, which became disabled during transit. During a routine pass through the port, shortly after commencing its scheduled journey to Sri Lanka, a mayday call was issued reporting loss of power and unresponsive steering, including the rudder. Though the warnings weren’t enough to evacuate the construction team working on potholes, they did provide enough notice to clear traffic and prevent even further loss of life. The Dali was transporting 4,700 containers at the time of the accident, though its maximum capacity is 10,000 20-foot (6-meter) containers, according to an article by PBS News Hour, and further details can be found within. Per the article, the Dali had undergone scheduled inspections, including just this past September (2023) by the U.S. Coast Guard while in New York. No problems were identified at that time and the ship also underwent routine engine maintenance prior to leaving Baltimore. With this knowledge, it appears that the collision was just a tragic accident, though changes in inspection timelines and/or protocols may be warranted in the future within the industry. More details about the mechanical failure and possible changes to how cargo vessels are maintained can be found in this article published by the New York Times on March 30, 2024, “Baltimore Investigation Turns to Ship’s Deadly Mechanical Failure.”

As a result of the bridge collapse, the Port of Baltimore is impassable. The U.S. Army Corps of Engineers is working round-the-clock to clear debris from the waterway with a plan for reopening the port by this May. Sonar images of bridge wreckage under the water’s surface exhibit just how enormous the task of clearing the passage remains to be. Due to the status of the port, the Associated Press reports that the Port of Baltimore will open a third port utilizing the state’s rainy day fund that will also provide financial assistance for employees affected by the bridge collapse. According to the article, Maryland Senator Ben Cardin states, “We now have two alternative channels that are open. We have a third channel that’ll be open this month that will deal with the majority of traffic into the port of Baltimore. And by the end of May we hope to have the entire channel reopened.” Even with some transport continuing through the port, several companies have had to divert their cargo and container vessels, primarily to other ports along the east coast. For the United States, coal exports will take a huge hit. The Hill published an article by Zack Budryk anticipating a “one-third” reduction in U.S. coal exports, at least through the summer with hopes of recovery towards the end of the year. Here in Jacksonville, though our JAXPORT won’t see many extra container ships. Chairman Dan Bean mentioned in a recent report by News4Jax that “only one” additional cargo vessel transporting automobiles was scheduled for Jacksonville, which our port could easily accommodate. He is also unconcerned with the likelihood of a similar accident happening at our Blount Island Marine Terminal near our city’s tallest bridge, the Dames Point. Jacksonville Mayor Donna Deegan also reassured the community in a recent Florida Times-Union article that our waterways and vessel traffic under the Dames Point bridge are not in danger. According to the article, Deegan points out that the bridge has reinforcements, “large concrete structures called ‘dolphins’ for protecting the bridge’s piers if a ship were to sail off course. The bridge also has sensors on the bottom of the bridge that gives real-time information on the distance from the river surface to the bottom of the bridge so pilots know how much clearance exists.”

As the east coast accepts diverted cargo ships and containers, alleviating some of the supply-chain impact of the Key bridge collapse, one Jacksonville-based company will see delays as a result. The Port of Baltimore is a major hub for CSX Corporation, a railroad company. Shipments including coal and other freight will be affected but the company is working diligently to address delays as quickly as possible. In a March 27th emailed statement published in the Jacksonville Daily Record, CSX expressed, “While freight traffic has not been entirely halted in the region [Baltimore], certain commodities have been affected by the incident. CSX is actively communicating with customers to provide updates on their shipment statuses as the situation evolves.”

All in all, the collapse of the Francis Scott Key bridge in Baltimore last month was a tragic accident that we should expect to precipitate change among many facets of the shipping industry. While the actual effects of vessel diversion and container transport will indeed cause some delay for many corporations, and inevitably some added costs and customer backlash, the major changes we can expect to see once investigations into the event have confirmed details will likely focus on regulations. The tragedy has highlighted a need for review and updates to current bridges and support structures and additional checklists during routine maintenance. Even waterway traffic patterns are now under scrutiny. In light of the devastation, we can only hope this misfortune will elicit positive evolution for the shipping industry and its infrastructure as a whole.

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Navigating Business Growth: When to Partner with a Third-Party Logistics (3PL) Provider

Mar 28, 2024 by AVI_Admin 0 Comments

As businesses embark on their journey, navigating the intricate web of logistics is a challenge that often evolves alongside their growth. From managing inventory to ensuring timely deliveries, logistics play a pivotal role in shaping operational efficiency and customer satisfaction. However, as companies expand and their logistical demands amplify, the decision to partner with a third-party logistics (3PL) provider becomes increasingly compelling. Let’s explore pivotal stages in a business’s life where the synergy with a 3PL can unlock newfound efficiency and scalability.

Startup Stage: Setting the Foundation for Success

In the embryonic stages of a business, every resource is meticulously allocated to foster growth. While handling logistics in-house may seem feasible initially, the burgeoning volume of orders and operational intricacies soon outstrip the capabilities of internal logistics management. This is where the strategic alliance with a 3PL provider proves invaluable. By outsourcing logistics functions, startups can divert their focus towards core business activities, laying a robust foundation for sustained growth without the burden of building and managing an in-house logistics infrastructure.

Rapid Growth Stage: Scaling Operations Seamlessly

As businesses experience rapid growth, they encounter a pivotal juncture where existing logistics capabilities may struggle to keep pace. The surge in demand coupled with logistical complexities can pose significant challenges, potentially hampering operational efficiency and customer satisfaction. Embracing a 3PL partner empowers companies to scale their operations seamlessly, unencumbered by logistical bottlenecks. By leveraging the expertise and infrastructure of a trusted 3PL provider, businesses can channel their efforts towards meeting increased demand, fostering customer loyalty, and expanding their market footprint.

Seasonal Peaks: Embracing Flexibility in Demand Fluctuations

For businesses navigating seasonal fluctuations in demand, managing inventory and fulfillment during peak seasons can be a daunting task. The ebb and flow of consumer demand necessitate agility and scalability, traits that are often challenging to achieve with rigid internal logistics frameworks. Herein lies the value proposition of partnering with a 3PL provider. By entrusting their logistical operations to a seasoned partner, businesses gain the flexibility and scalability required to navigate seasonal peaks seamlessly. From optimizing inventory management to streamlining order fulfillment, a strategic alliance with a 3PL enables businesses to capitalize on fleeting opportunities and meet dynamic market demands effectively.

Global Expansion: Navigating the Complexities of International Markets

As companies embark on the path of global expansion, they are confronted with a myriad of logistical complexities, ranging from international shipping regulations to intricate supply chain networks. In such a landscape, the guidance and expertise of a 3PL provider with global capabilities become indispensable. By harnessing the extensive network and cross-border logistics prowess of a trusted partner, businesses can navigate the complexities of international markets with confidence. From navigating customs regulations to optimizing distribution networks, a strategic alliance with a 3PL facilitates seamless expansion into new geographies, unlocking new avenues for growth and prosperity.

Cost Optimization: Driving Efficiency in the Supply Chain

In an era defined by fierce competition and razor-thin margins, optimizing supply chain costs is imperative for sustainable growth. By partnering with a 3PL provider, businesses can tap into a wealth of cost-effective solutions designed to enhance operational efficiency and drive bottom-line savings. Whether it’s streamlining warehousing operations, optimizing transportation routes, or implementing inventory management best practices, a strategic alliance with a 3PL enables businesses to harness economies of scale and unlock newfound efficiencies across the supply chain.

Complex Logistics Requirements: Leveraging Specialized Expertise

For businesses operating in industries with specialized or complex logistics requirements, the expertise and resources of a seasoned 3PL partner are invaluable assets. Whether it’s the stringent regulatory requirements of the healthcare and pharmaceutical sectors or the intricate supply chain dynamics of the food industry, partnering with a 3PL provider early on empowers businesses to navigate these challenges with confidence. By leveraging the specialized expertise and industry-specific solutions offered by a trusted 3PL partner, businesses can streamline their operations, mitigate risk, and ensure compliance with regulatory mandates, laying a solid foundation for sustained success.

The decision to partner with a third-party logistics provider is a strategic imperative that evolves alongside the trajectory of a business. From the nascent stages of startup growth to the complexities of global expansion, the synergy with a trusted 3PL partner unlocks newfound efficiency, scalability, and resilience across the supply chain. As businesses embark on their journey towards growth and prosperity, the strategic alliance with a 3PL provider serves as a beacon of innovation, enabling them to navigate the complexities of modern commerce with confidence and agility.

Air Van Inc has all your Third Pary logistics needs covered from Local Pick-Up and Delivery, Drayage Services, Less-Than-Truckload (LTL) or Truckload, Cross Dock, and more. If you are looking for a third-party logistics partner in the Jacksonville area, contact Air Van today.

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Now Deadly Yemen-Based Houthi Rebel Attacks Continue to Plague Integral Trade Route – Detouring Cargo Ships by Thousands of Miles, Creating Crises for Shippers Worldwide

Mar 21, 2024 by AVI_Admin 0 Comments

The ongoing siege of attacks against military and cargo shipping vessels throughout the Red Sea and adjoining Suez Canal – a crucial trade route for shippers worldwide – at the hands of Yemen-based, Iranian-backed Houthi rebels is reshaping transit and diverting container ships by thousands of miles to preserve both crewmember safety and product. Militant forces in the area have launched a campaign of seemingly indiscriminate assaults against military and commercial vessels, including drone strikes and anti-ship ballistic missiles, since late 2023 despite U.S. and U.K Naval presence and counterstrikes, which have now turned fatal.

Just over a week ago, the Liberian-owned cargo ship True Confidence which typically transports dry goods like grain and ore was struck by two Houthi missiles while passing through the Gulf of Aden, seriously damaging the vessel and killing at least three people. Several others were reported injured including three crewmembers listed in critical condition. Another recent attack sank the Lebanese-owned cargo ship, Rubymar, spilling 41,000 tons of fertilizer and its fuel into the Red Sea, creating an 18-mile oil slick and immeasurable damage to the oceanic environment.

These incidents are just two examples of the many threats and increasingly violent attacks plaguing the prominent maritime trade route, which aren’t likely to stop anytime soon. The Houthi maintain that the attacks are a direct response to Israel’s war against Hamas in the Gaza Strip, a conflict that continues to intensify and further divide multiple nations. With no resolution in sight, logistics companies involved in international trade have no choice but to heed the warnings and dangers expressed and divert vessels through safer passage, though the alternate route extends thousands of additional miles around Africa’s southernmost point, the Cape of Good Hope. The impacts of such a detour are massive on global trade as a whole, significantly amplifying the costs of shipping services as a whole and creating troublesome environmental effects.

Effects on Maritime Logistics & Trade

Increased Travel Time & Delays

The diversion of shipping away from the Red Sea and Suez Canal and towards longer routes affects shipping patterns globally. Logistics companies rely on efficient shipping routes to transport goods in a timely manner. Longer routes will increase transit times, which may disrupt supply chains and lead to delays in delivering goods to their destinations.

Increased Fuel Consumption & Escalating Cost Amongst Uncertainty

The shift in maritime trade routes requires higher demand for bunker fuel, which is used to power ships. Logistics companies involved in commercial cargo transportation are directly impacted by changes in fuel consumption, as it affects their operating costs. Higher fuel costs can decrease profit margins for logistics companies and may necessitate adjustments in pricing strategies for their services. But there are also broader economic implications. Considering geographic location and political affiliation, logistics companies based in the United States in particular may experience drastic fluctuations in the demand for their services. Continued conflict and escalating hostility regarding the position of the U.S. could have a staggering impact on international trade and commerce. Economic uncertainty amongst global contention can make it difficult for logistics companies to forecast future demand and plan their operations effectively.

Supply Chain Disruptions

Any disruptions in global shipping patterns ripple throughout the entire supply chain. Whether trade involves superfluous luxuries for retail sale or necessities such as food, energy or raw resources, logistics companies facilitate all the moving parts from manufacturing to final mile delivery. The United States is one of the world’s largest consumers of imported goods and also exports goods and resources worldwide. Uncertainties related to maritime transportation or transit delays may pose new challenges in coordinating shipments and managing inventory levels. This can lead to inventory shortages, production delays, and ultimately, dissatisfied customers.

Ultimately, we are all in a waiting game in hopes of seeing resolution to conflicts – and a cease in devastating attacks with massive derogatory implications – in an unstable time. Wartime assaults are affecting global trade, the people who consume those goods, the welfare of civilians and nations dependent upon resources for energy and food, and the logistics companies who coordinate the ins and outs of maritime trade. Increasing violence and the necessary response to change the flow of global maritime trade is creating waves of disruption that continue to spread. The effects of these crises are still compounding, with no end in sight.

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JAXPORT’s Strategic Advancements and Their Positive Impact on Third Party Logistics Providers

Feb 27, 2024 by AVI_Admin 0 Comments

In the ever-evolving landscape of global trade, strategic initiatives are crucial for fostering growth and competitiveness. JAXPORT (Jacksonville Port Authority) has been leading the charge with forward-thinking developments aimed at positioning Jacksonville as a pivotal hub for cargo volume expansion. Let’s explore how these recent advancements benefit third-party logistics providers (3PLs) such as Air Van Inc.

Enhanced Global Connectivity:

The launch of JAXPORT’s direct container service with the West Coast of South America presents a significant boon for 3PLs. By establishing smoother trade routes, this initiative reduces transit times and enhances supply chain efficiency. For companies similar to Air Van Inc., this means improved access to markets in South America and beyond, facilitating seamless transportation solutions for their clients’ cargo needs.

Expanded Terminal Capacities:

JAXPORT’s terminal expansion and modernization efforts, including the long-term agreement with Enstructure, translate to increased handling capacities for diverse cargo types. With the addition of new on-terminal covered storage facilities, 3PLs gain access to enhanced infrastructure, enabling them to accommodate a wider range of cargo requirements. This expanded footprint equips companies with the necessary resources to offer comprehensive logistics solutions to their clientele.

Diversification of Services:

The introduction of passenger cruise service and the establishment of Primark’s distribution center underscore Jacksonville’s growing appeal as a multifaceted logistics hub. While the addition of a passenger cruise service may not directly impact a third-party logistics provider, it can indirectly create opportunities for growth and collaboration by stimulating port activity, driving infrastructure development, boosting the local economy, and diversifying service offerings within the logistics ecosystem.

Investment in Sustainable Infrastructure:

JAXPORT’s commitment to sustainability through facility upgrades aligns with the values of environmentally conscious 3PLs like Air Van Inc. The adoption of eco-friendly equipment and the emphasis on reducing carbon footprint not only contribute to a greener future but also enhance operational efficiency. Air Van Inc. can leverage these sustainable practices to attract clients who prioritize environmentally responsible logistics solutions, thus strengthening their market positioning

In essence, JAXPORT’s strategic initiatives positively impact 3PLs like Air Van Inc. by offering improved global connectivity, expanded terminal capacities, diversified service offerings, and sustainable infrastructure. As a result, Air Van Inc. is better equipped to meet the evolving needs of their clients, providing efficient and tailored logistics solutions in an increasingly competitive marketplace. As Jacksonville emerges as a key player in global trade, 3PLs like Air Van Inc. stand to benefit from the opportunities presented by these transformative developments.

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Local Logistics Company Air Van, Inc. Has Acquired G&C Cartage Co. Inc.,Gaining Additional Market Share and Expanding Service Offerings.

Feb 19, 2024 by AVI_Admin 0 Comments

[Jacksonville, Fla.] – Air Van, Inc., a Jacksonville-based third-party logistics company (3PL) has acquired G & C Cartage Co., Inc., a longtime, family-owned logistics provider that has accommodated area commercial transportation services since 1971. The acquisition of the business along with the physical building and warehouse space located at 6801 W. 12th Street, Jacksonville, FL 32254, will further broaden Air Van’s array of offerings enabling them to service a more expansive business population.

Air Van, Inc. is excited to announce the recent deal made with the President and CEO of G & C Cartage Co. Inc., Jeremiah Stokes, who has been a part of leadership since 2021. In his time with the firm that specialized in warehousing, transportation, and shipping coordination, Stokes successfully grew the business by procuring over $300K in new client agreements, retaining 100% of employee jobs throughout overhauling processes, and doubling the company’s net profit within a two-year span, all while reducing costs by 36%. These achievements helped make G & C Cartage Co., Inc. an attractive prospect with a great location, featuring over 35,000 square feet of warehousing, for Air Van, Inc.’s plans for growth. The new purchase is perfectly suited to meet the growing needs of import and domestic services.

In a market that has experienced drastic changes and uncertainty since the pandemic, the goal is to expand offerings and become the most efficient and reliable resource for customers. And offering reliable service starts with cultivating the right team to ensure the company doesn’t miss a beat. President and CEO of Air Van, Inc., Ike Sherlock, credits his employees (“the people”) with being the unique asset of the company that fosters successful relationships. In an interview with The Buzz early last year, Sherlock refers to staff as “the secret sauce,” crediting the skills, talent, and experience of team members.

Air Van, Inc. is dedicated to improving market flow and ensuring efficient “Final Mile Delivery” – the crucial process of transporting goods from warehouses to their destination, reducing costs, enhancing efficiency, and streamlining supply chain operations for businesses. This business acquisition will allow the company to further expand on an already thriving business model ensuring customers are receiving first in class 3PL services all under one roof.

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Navigating the Complex World of Supply Chain Regulations

Feb 1, 2024 by AVI_Admin 0 Comments

The world of supply chain management is evolving rapidly, and at its forefront are the rules and regulations that govern it. These regulations are reshaping the landscape, making it imperative for businesses to shift their focus from mere spend management to full compliance with the ever-evolving supply chain rules and regulations.

Why Compliance Matters

Compliance with supply chain regulations is no longer optional; it’s a necessity. These regulations have far-reaching implications for businesses, impacting not only their operations but also their reputations. Supply chain laws encompass a wide array of requirements, including sustainability, environmental impact, human rights, anti-corruption measures, and more.

Staying abreast of these constantly changing regulations is challenging, but failing to comply can be even more daunting. Businesses must be prepared to navigate the intricate web of supply chain rules and regulations to avoid potential pitfalls.

International Trade Regulations

Most global trade relies on transactions within the vast network of global supply chains. These supply chain rules encompass import and export restrictions, customs procedures, and trade agreements that dictate the flow of goods across borders. The impact of these policies is potent enough to either disrupt or redirect global trade patterns.

Environmental, Social, and Governance Standards

The supply chain wields a substantial influence on the environment, with the transportation sector alone contributing to 29% of greenhouse gas emissions in the U.S. and 14% worldwide. From pledging money to transition away from fossil fuels to utilizing route planning software that has saved millions of miles and reduced fuel consumption, significantly reducing carbon emissions, many companies are recognizing their social responsibility and taking action.

Beyond environmental considerations, the supply chain also bears a significant social responsibility, employing approximately 450 million people worldwide. This encompasses human rights, labor standards, and child labor issues. Neglecting ESG compliance can lead to dire consequences, including harm to the environment, damage to a company’s reputation, and legal penalties.

Product Safety and Quality Regulations

Compliance with product safety and quality regulations is essential to meet the necessary standards. These supply chain rules cover certifications, labeling, health and safety, and testing. Falling short in terms of quality and safety can be perilous. For example, U.S. clothing company H&M (Hennes & Mauritz) was fined $1 million in 2020 for violating California’s hazardous waste laws.

Security Regulations and Data Privacy

In an increasingly digital world, data privacy and security rules are paramount for supply chains. Companies must exercise caution in data sharing with external partners, enforce strict access controls, conduct audits, assess risks, and adhere to regulations like GDPR to safeguard sensitive information. Data breaches, as exemplified by the Capital One incident, can lead to substantial fines when security vulnerabilities in the supply chain are exploited.

Bribery Regulations and Anti-corruption

Corruption within supply chains poses a persistent threat, jeopardizing a company’s reputation and financial stability. Buyers and suppliers must implement anti-bribery policies and procedures, alongside practices like due diligence, anti-corruption policies, and specific guidelines for company representatives. To combat corruption, businesses should establish internal compliance systems and remain vigilant about risks throughout their supply chain. Adidas, for instance, addresses this issue with a Supplier Code of Conduct and conducts regular supplier audits to ensure compliance.

Adhering to best practices in supply chain compliance goes beyond meeting minimum standards. It fosters trust among all stakeholders and streamlines collaboration. When everyone understands and follows the rules, the supply chain operates smoothly, efficiently, and ethically, benefiting businesses and society as a whole. In today’s complex and interconnected world, compliance is not just a requirement; it’s a path toward a more sustainable and responsible future.

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Impacts of Excessive Packaging and How to Improve Transportation Logistics

Jan 15, 2024 by AVI_Admin 0 Comments

When was the last time you ordered a product online and received it in a package that seemed unusually large for such an item? For us, it was nearly every gift ordered over the holiday season. Why did our car key fob’s replacement battery – literally the size of a quarter – arrive in a box, within a box, large enough to ship one of the trending Stanley Quencher Tumblers? It’s an ongoing problem that needs to be addressed and can seemingly be corrected, over time, via better data and smarter logistics.

With advances in shipping processes and technology, one would think the most cost-effective, accurately sized packaging would be at the forefront of parcel-delivery engineering, yet “void fill” remains an ongoing issue. Throughout the industry, “void fill” refers to the excess space separate from the product within its shipping parcel, and surrounding filler materials. According to some estimates, void fill accounts for up to 40-50+% of a package’s interior. That’s a lot of extra space and material, a problem that seems to have a simple solution – use a smaller box – but it’s a bit more complicated than it appears at a glance.

Packaging problems plague both business-to-business (B2B) and business-to-consumer (B2C) commerce categories, but B2C or direct-to-consumer items are usually the biggest offenders. Smaller merchants such as mom-and-pop companies aren’t typically packaging experts; they choose from premade boxes and bags that aren’t necessarily best suited to the items they’re selling, but it’s what is available without costly customized packaging and high-tech equipment. Large retailers experience different challenges but ultimately face the same dilemmas with rightsized packaging. According to John Moore, founder of IQpack, which is an Indiana-based company dedicated to preparing and managing item master and logistics data, packaging problems stem from a lack of master item data, specifically shipment sizes and weight, and algorithms designed around flawed data. Per Moore, ”The cost of bad data is enormous, especially with the dimensionalization of freight.” Thus, accurate information is a key component of efficient packaging.

Unnecessarily large boxes and filler aren’t the only factors contributing to high shipping costs for retailers. Inefficient packaging is costly not just due to excessive materials, but largely because of wasted space. From manufacturer to merchant, space costs money. Working with a third-party logistics (3PL) company can help ensure the best services and can help keep costs down, but space is space. From air cargo to truckload capacity, improper packaging impairs effective packing, meaning containers aren’t as full as they could be. Thus, companies overpay for space that isn’t truly optimized. Also, aircraft and delivery trucks are huge sources of CO2 emissions via the use of fossil fuels, which we now know are harmful to the environment. Oversized packaging contributes to emissions creating the need for more physical containers and fuel to move the same amount of freight through the supply chain.

Improper packaging creates environmental concerns due to inefficient transport, but let’s not forget about the actual parcels themselves. Even when recycled materials are used, not all packaging is sustainably sourced. Cardboard boxes (also referred to as OCC – Old Corrugated Containers) are the “most recycled packaging materials in the United States,” according to the American Forest & Paper Association, but there are still a number of sources and byproducts of cardboard production. Yet another factor to consider in addition to CO2 emissions.

With all this information, it’s clear that solving the problems caused by poor and excessive packaging will take time. But there are tools and help available. Retailers of all sizes could benefit from enlisting a consultancy to create and maintain item data in order to correctly prepare packaging materials. With accurate item data and shipping sizes, algorithms used to select parcels will become more precise, reducing the need for so much void fill and material waste. Working with a 3PL company can also help with transportation logistics and costs and can only become more beneficial as companies slowly shift to better, smarter packaging. The need is real, and while some retailers might not see the value of an investment in proper package sizes and data right away, accuracy will eventually reduce the cost of shipping and pay for itself, especially when handled by industry experts.

Category: Uncategorized

California’s Proposed Rules

Concerns & Opposition

Rounding Things Out

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How It Happened:

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Startup Stage: Setting the Foundation for Success

Effects on Maritime Logistics & Trade

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Why Compliance Matters

International Trade Regulations

Environmental, Social, and Governance Standards

Product Safety and Quality Regulations

Security Regulations and Data Privacy

Bribery Regulations and Anti-corruption

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